The shocking year for Australian corporate collapses has continued, with discount tools chain Glenfords now up for sale after being placed in voluntary administration last week.
The sale of the chain comes as the do-it-yourself sector has reached a major transformation point, with market leading hardware chain Bunnings now battling the Woolworths-backed Masters chain.
Analysts have said mid-tier and smaller operators will slowly be pushed out of the market as Bunnings and Masters stores dominate areas once controlled by SMEs.
Glenfords, which claims to be the company’s first and largest chain of specialist retail tool stores, has 17 locations in Queensland, Western Australia and New South Wales.
It focuses on retail tools and small machinery for the construction and automotive industries, and in the 2011 financial year turned over $35 million.
The construction industry has been one of the worst hit this year – it suffers the highest number of insolvency appointments out of any sector. Glenfords has likely suffered alongside that drop in demand.
The company was contacted this morning, but SmartCompany was referred to administrators BDO, whose associate director Roger Postle was not available prior to publication.
The company has informed customers on its website that it has been placed in voluntary administration.
The announcement comes after news South Australian business Candetti Constructions had been placed in administration due to complications surrounding money owed for projects.
Experts suggest despite two interest rate cuts, a recovery in construction may not occur until later next year.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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